A beneficial estate planning document

The Law Office of Anne Sunne Freeman • February 25, 2024

Florida is a primary location with diverse communities spread throughout the state. You might be one of its many retirees or part of a young couple who is just starting out in their married life. Maybe you’re an entrepreneur or a member of one of many immigrant cultures who have settled here. In any case, if you’re 18 or older, you can execute the estate planning process, and should, if you want to protect your assets, as well as ensure the carrying out of your wishes if you become incapacitated. 


Most people are familiar with basic estate planning documents, such as a last will and testament or a revocable trust. There’s a lesser-known document available to Florida estate owners known as an “Enhanced Life Estate Deed,” also called a “Lady Bird Deed.” This document has a specific purpose, which is to transfer ownership of real estate without it passing through probate. The document takes effect when the benefactor dies. 


Isn’t this estate planning document a Transfer on Death Deed by another name? 

Another estate planning document, known as a Transfer on Death Deed (TODD), is like an Enhanced Life Estate Deed in several ways. In Florida, however, estate laws prohibit the transfer of real estate through a TODD. If you want to leave your house or land that you own to someone when you die, you can use a Lady Bird Deed but not a TODD. 


When you sign a Lady Bird Deed, you retain ownership of the real estate in question during your lifetime. You can sell it, rent it, renovate it, etc., without the consent of the beneficiary you have listed in the deed. Upon your death, ownership automatically transfers to the beneficiary. 


Changing a Lady Bird Deed 

With a last will and testament or a revocable trust, you can make changes to the document at any time. With a Lady Bird Deed, if you want to add a beneficiary or remove one, etc., you must execute an entirely new document and sign it in accordance with Florida estate laws. Such documents often spark family discord, especially if someone expects to find their name listed as beneficiary, only to discover that it’s not there. A family member can challenge the validity of a Lady Bird Deed. 


The estate planning process is highly customizable. If you’re planning your estate in Florida, you can choose which documents to include and which to omit. The documents that fit your needs and goals may be different than another estate owner’s plan. If you’re unsure whether a Lady Bird Deed is the way to go, you can ask someone who is well-versed in Florida estate laws to review your plan. 

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A person who is creating an estate plan or will is a testator. Testators largely have control over the terms of their wills and other documents. Although the law does limit testator actions in some ways, such as giving spouses protection from disinheritance, the testator can potentially set whatever terms they’d like in a will and other estate planning documents. The will someone leaves behind when they die largely determines what happens during estate administration. Their family members may have to assume a position of authority based on the wishes a testator included in a will. What they inherit also depends on the documents the testator drafts. Sometimes, families feel uncertain about the validity of the documents. There may be concerns about undue influence or a testator’s declining cognitive abilities in their last years of life. Families sometimes contest wills in probate court as a means of upholding someone’s true wishes. If there is a penalty clause in a Florida will, could litigation endanger someone’s inheritance? Florida does not enforce penalty clauses A penalty clause is a special inclusion in a will that eliminates the inheritance of someone who brings unnecessary litigation against the estate plan. Most states enforce penalty or no-contest clauses in some circumstances. If someone files a lawsuit challenging the documents a testator makes, the courts may eventually strip them of their inheritance rights because of that clause. Florida is unique in that state statutes outright prohibit the enforcement of penalty clauses. People can go to court out of concern for the terms included in estate planning documents without any risk of losing their inheritances. That risk is a powerful deterrent against misconduct and unnecessary litigation. The inclusion of a no-contest clause does not invalidate a will. However, the courts do not enforce such clauses by stripping someone of their inheritance if they initiate probate litigation. Penalty clauses serve only as a deterrent in Florida because of the unique probate statutes in the Sunshine State. That being said, probate litigation can diminish the value of an estate and could potentially reduce what someone eventually inherits. Pursuing a will contest in probate court requires careful planning and evaluating whether there are viable grounds for litigation. Those with an interest in an estate may need help reviewing relevant documents to determine the best options available to them.